Connect with us

Share Market

Wall Street Week Ahead for the trading week beginning May 25th, 2020

Published

on



Good Saturday morning to all of you here on r/StockMarket. I hope everyone on this sub made out pretty nicely in the market this past week, and is ready for the new trading week ahead.

Here is everything you need to know to get you ready for the trading week beginning May 25th, 2020.

Market could get a boost as states reopen, but new economic data will show just how bad things got during shutdowns – (Source)


Stocks are likely to hang on every medical development and the progress of state reopenings, but there will also be some key economic data in the coming week that should provide a glimpse into the depths of the state shutdowns.


The Fed’s beige book of economic activity is released Wednesday afternoon. There is also April manufacturing data in durable goods Thursday and April’s consumer income and spending data Friday. While that should provide an interesting view of how sluggish activity became, the market is expected to focus more on May consumer confidence Tuesday and consumer sentiment Friday.


“The backward looking data is not going to get any attention paid to it,” said Ed Keon, chief investment strategist at QMA. “It’s going to be terrible, and that’s not going to be a surprise. Confidence has held up pretty well, all things considered. It’s the PPP and unemployment benefits. People who get some support for income seem to be pretty confident.” Congress is expected to take up changes to the Paycheck Protection Program for small business when it returns June 1.


April’s economic data is expected to be about the worst of the recession, since most state shutdowns extended through a good part of the month, ahead of May reopenings. First quarter gross domestic product is expected to have declined by 4.8% when a second reading is released Wednesday, but for the second quarter, GDP is expected to decline by a median 33.1%, according to CNBC/Moody’s Analytics Rapid Update, a survey of economists.


Stocks gained in the past week, though rising tensions between the U.S. and China weighed on the market Thursday and Friday and could become a bigger headwind.


The S&P 500 was heading for a weekly gain of 3%, its second weekly gain in three. A big catalyst came Monday, when Moderna disclosed positive data from a small group of patients in an early trial, but it was a wild week of trading for the company’s stock as doubts arose about its limited results. On Friday, however, White House health advisor Dr. Anthony Fauci said the data showed promise and he was cautiously optimistic a vaccine would be developed.


Astra Zeneca’s vaccine effort got a boost this week when it received $1 billion from the U.S. Health Department’s Biomedical Advanced Research and Development Authority to develop a coronavirus vaccine from the University of Oxford.


With investors focused on vaccines and state reopenings, market winners were the more volatile Russell 2000, up 7.8% for the week and the Dow Transports, up nearly 9.1% as airlines and other reopening stocks rallied. Airlines were up nearly 20% on the week. After a batch of earnings reports, retailers were also higher on the week, with the SPDR S&P Retail ETF up 6% for the week.


Retailers are again among the companies reporting earnings in the week ahead, as the first quarter reporting season winds down. Costco, Nordstrom, Ulta Beauty and Burlington Stores are some of the names reporting.


Keon said he is watching the economic reopenings and says the success really depends on the behavior of individuals, and whether there’s another spike in infections.


“People are still scared,” he said. “It’s the personal behavior that’s going to make a difference to economic behavior. We’ll get back to some semblance of normal. It’s going to take awhile for people to feel more confident.”


He expects to see a rebound of economic activity in the second half of the year, but not a V-shaped recovery.


“By the end of the year, if we don’t get a vaccine, we will have made a lot of progress on a vaccine. I’m still cautiously optimistic that the market can hang in, and maybe end the year a little bit higher,” he said.


One big reopening in the week ahead will be on Tuesday when the iconic NYSE trading floor reopens.


This past week saw the following moves in the S&P:

(CLICK HERE FOR THE FULL S&P TREE MAP FOR THE PAST WEEK!)

Major Indices for this past week:

(CLICK HERE FOR THE MAJOR INDICES FOR THE PAST WEEK!)

Major Futures Markets as of Friday's close:

(CLICK HERE FOR THE MAJOR FUTURES INDICES AS OF FRIDAY!)

Economic Calendar for the Week Ahead:

(CLICK HERE FOR THE FULL ECONOMIC CALENDAR FOR THE WEEK AHEAD!)

Percentage Changes for the Major Indices, WTD, MTD, QTD, YTD as of Friday's close:

(CLICK HERE FOR THE CHART!)

S&P Sectors for the Past Week:

(CLICK HERE FOR THE CHART!)

Major Indices Pullback/Correction Levels as of Friday's close:

(CLICK HERE FOR THE CHART!

Major Indices Rally Levels as of Friday's close:

(CLICK HERE FOR THE CHART!)

Most Anticipated Earnings Releases for this week:

(CLICK HERE FOR THE CHART!)

Here are the upcoming IPO's for this week:

(CLICK HERE FOR THE CHART!)

Friday's Stock Analyst Upgrades & Downgrades:

(CLICK HERE FOR THE CHART LINK #1!)
(CLICK HERE FOR THE CHART LINK #2!)
(CLICK HERE FOR THE CHART LINK #3!)

Weekly Market Performance – May 22, 2020: Stocks Solid in the Midst of Health and Political Challenges

Equities

US equities delivered solid returns this week. With three hours to go in the week, all three markets were up almost 3% for the week, with the best performer, once again, the technology-heavy Nasdaq. The small cap Russell 2000 Index enjoyed an impressive rally, with the index returning over 9% for the week. The mid-cap S&P 400 Index also had a solid showing, returning almost 9%.

Amid ongoing COVID-19 disruptions, rising unemployment, and risks associated with reopening the economy, US stocks continued to rebound. The rally was supported by all 50 states easing restrictions, based on improving COIVD-19 trends. Several timely indicators have pointed to a pickup in economic activity, including higher credit and debit card spending and an increase in travelers based on TSA data. Second quarter gross domestic product (GDP) could contract as much as 30% annualized, but global progress in reopening economies combined with massive stimulus measures point to a potentially strong rebound in the third and fourth quarters.

“The S&P 500 just had the second-best 40-day rally ever, with only the returns off the March 2009 lows better,” explained LPL Financial Senior Market Strategist Ryan Detrick. “Near-term, we have some concerns of a well-deserved pullback, but historically, these huge moves have tended to resolve much higher over the ensuing 6- and 12-month periods.”

(CLICK HERE FOR THE CHART!)

In a change of pace, industrials were the top-performing sector for the week, followed by the energy sector. The worst-performing sectors were healthcare and consumer staples, and they posted returns that were slightly negative for the week. Looking at style, large cap value stocks edged out large cap growth for the week.


Leading Indicators Signal Potential Bottom

Leading economic indicators are signaling that the pace of economic deterioration may be slowing. As shown in the LPL Chart of the Day, the Conference Board’s Leading Economic Index (LEI), a composite of leading data series, fell 4.4% month over month in April. While this is an undeniably abysmal reading, it is an improvement from the -7.4% in March.

”The monthly LEI change tends to bottom early in a recession, and sometimes even before a recession’s official start,” said LPL Financial Senior Market Strategist Ryan Detrick. “Stocks are forward looking, so if investors feel confident that the economic damage will not accelerate from here, they may be more willing to put capital to work. We think today’s LEI number largely confirms April’s strong moves in the equity markets.”

(CLICK HERE FOR THE CHART!)

The performance of the 10 underlying components in the LEI does indicate some disconnect between financial markets and the real economy. The two largest positive contributors to the headline LEI number this month were stock prices and the interest rate spread, which were buoyed by a swift and robust monetary and fiscal stimulus. Meanwhile, data series related to manufacturing, unemployment, and construction hurt the index, a reflection of the damage done to the parts of the economy in which workers are unable to perform their jobs remotely.

As local economies begin to reopen, we look for the industries disproportionately impacted by the COVID-19 virus to begin to rebound. While this will likely be a bumpy process, progress will likely become evident in future LEI releases and confirm that the worst of the economic declines are behind us. We think this should pave the way for further equity gains over a long-term horizon.


What Happens When The Bear Ends?

The incredible rally off the March 23 lows continues for equities, with the S&P 500 Index now up more than 32% in 40 trading days. As impressive as the rally has been, we do have some near-term concerns, as we discussed in Downside Risk Remains. Higher valuations, US-/China relations, weakening technicals, and the historically troublesome summer months all could play a part in potential weakness after the record run.

“In 40 trading days, the S&P 500 gained 32%, which is second only to the 40 days off the March 2009 lows,” explained LPL Financial Senior Market Strategist Ryan Detrick. “Looking back at history shows that after the initial surge off of bear lows, stocks tend to correct about 10%, which is something we could see this time around.”

As shown in the LPL Chart of the Day, the S&P 500 rallied nearly 21% in 30 days after all major bear markets. But once those initial rallies ended, there was a correction of more than 10% on average. Bottoms are a process, and as impressive as this run has been, we think the odds are quite high for some type of pullback or correction over the coming months. Thanks to our friends at Strategas Research Partners for the data points below.

(CLICK HERE FOR THE CHART!)

Bottom Line EPS Beat Rate Below Average

The first quarter earnings reporting period unofficially came to an end earlier this week, and it should be considered quite a success given how well the equity market performed during this time period. Since earnings season began on April 13th, the S&P 500 (SPY) has gained more than 5%. Of course, the market's performance over the last month or so has much more to do with expectations on re-opening than how companies reported in Q1, but all things considered, the sky didn't fall when it came to earnings results.

In terms of how actual earnings reports came in versus analyst expectations this past earnings season, the trend wasn't all that rosy. We've been tracking "beat rates" for more than a decade, which measure the percentage of companies reporting stronger than expected EPS and sales numbers (relative to consensus analyst estimates). Our main "beat rate" trackers show beat rates on a rolling 3-month basis — meaning it looks at all companies that have reported earnings over the last three months and tells you what percentage of them beat analyst estimates.

Below is a snapshot of both bottom-line EPS and top-line sales beat rates over the last five years as displayed on our website at our "Earnings Explorer" page. Notably, bottom-line EPS beat rates have been weakening quite dramatically over the last couple of months since the COVID crisis began. Just this week, the 3-month rolling EPS beat rate dipped below its long-term average of 59.37% dating back to the year 2000.

On the other hand, top-line sales beat rates haven't taken quite the hit yet. The current sales beat rate stands at 60.67%. While sales on an absolute basis fell dramatically at the end of Q1, the fact that sales beat rates haven't fallen dramatically means companies have at least managed to keep up with analyst expectations. A very weak sales beat rate would have meant companies were reporting numbers even weaker than already dour analyst expectations.

(CLICK HERE FOR THE CHART!)

We also have a forward guidance tracker that measures the percentage of companies raising guidance versus the percentage of companies lowering guidance. When this reading turns negative, it means more companies have lowered guidance than raised guidance over the last three months. As shown below, right now our guidance spread stands at -16.08 percentage points, which is the weakest reading we've seen since early 2016.

One thing we've seen since the COVID crisis began is that more and more companies have withdrawn guidance altogether. It's hard to blame them. The ones that have issued guidance have mostly lowered expectations. While this paints a bleak picture for the future, if you look at this from a "glass half full" perspective, it actually leaves much more room for positive surprises down the road.

(CLICK HERE FOR THE CHART!)

S&P 500 Down Five Straight Day After Memorial Day

Our office will be closed for observance of Memorial Day on Monday, May 25. U.S stock and bond markets will also be closed. As you spend some quality time off please consider taking time to commemorate those who have paid the ultimate price while serving in the U.S. military. Additionally, consider taking a moment to acknowledge first responders, nurses, doctors, law enforcement, firefighters, essential workers, scientists and everyone else that has tirelessly worked and sacrificed during the COVID-19 pandemic.

For decades the Stock Trader’s Almanac has been tracking and monitoring the market’s performance around holidays. The trading day after Memorial Day has a mixed record going back to 1971. Both S&P 500 and NASDAQ have declined more often than risen on the day, but average performance is still modestly positive. Since 1986, the frequency of gains has improved, and average performance has also risen however, over the last five years S&P 500 has declined. The second trading day after Memorial Day has more advances than declines, but average performance is negative for NASDAQ. The third day after appears to have the best long- and short-term record combined with solid average performance.

(CLICK HERE FOR THE CHART!)

Election-Year June: Candidate Clarity Boosts Performance

June has shone brighter on NASDAQ stocks over the last 49 years as a rule ranking seventh with a 0.8% average gain, up 27 of 49 years. This contributes to NASDAQ’s “Best Eight Months” which ends in June. June ranks near the bottom on the Dow Jones Industrials just above September since 1950 with an average loss of 0.2%. S&P 500 performs similarly poorly, ranking tenth, but essentially flat (0.1% average gain). Small caps also tend to fare well in June. Russell 2000 has averaged 0.8% in the month since 1979.

In election years since 1950, June’s performance improves notably. June is the #5 DJIA month in election years averaging a 0.9% gain with a record of twelve advances in seventeen years. For S&P 500, June is #2 with an average gain of 1.3% (14-3 record). Election-year June ranks #4 for NASDAQ and Russell 2000 with average gains of 1.6% and 1.4% respectively. This performance improvement is most likely the result of presidential candidate field being sufficiently narrowed, and the ultimate nominees being identified.

(CLICK HERE FOR THE CHART!)

STOCK MARKET VIDEO: Stock Market Analysis Video for Week Ending May 22nd, 2020

(CLICK HERE FOR THE YOUTUBE VIDEO!)

STOCK MARKET VIDEO: ShadowTrader Video Weekly 5.24.20

(CLICK HERE FOR THE YOUTUBE VIDEO!)

Here are the most notable companies (tickers) reporting earnings in this upcoming trading week ahead-


  • $COST
  • $AZO
  • $DG
  • $DLTR
  • $CRM
  • $PLAN
  • $CGC
  • $BNS
  • $OKTA
  • $NIO
  • $RL
  • $WDAY
  • $CBL
  • $MRVL
  • $ESLT
  • $ADSK
  • $HPQ
  • $MOMO
  • $VEEV
  • $HIBB
  • $ZS
  • $ULTA
  • $TD
  • $CSIQ
  • $KEYS
  • $NTNX
  • $PLAB
  • $BMO
  • $BURL
  • $RY
  • $MGIC
  • $BOX
  • $ERJ
  • $ANF
  • $DELL
  • $CYD
  • $PLT
  • $VIPS
  • $COHR
  • $VIOT
  • $NTAP

(CLICK HERE FOR NEXT WEEK'S MOST NOTABLE EARNINGS RELEASES!)
(CLICK HERE FOR NEXT WEEK'S HIGHEST VOLATILITY EARNINGS RELEASES!)

Below are some of the notable companies coming out with earnings releases this upcoming trading week ahead which includes the date/time of release & consensus estimates courtesy of Earnings Whispers:


Monday 5.25.20 Before Market Open:

([CLICK HERE FOR MONDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!]())

NONE. (U.S. MARKETS CLOSED IN OBSERVANCE OF THE MEMORIAL DAY HOLIDAY.)

Monday 5.25.20 After Market Close:

([CLICK HERE FOR MONDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!]())

NONE. (U.S. MARKETS CLOSED IN OBSERVANCE OF THE MEMORIAL DAY HOLIDAY.)


Tuesday 5.26.20 Before Market Open:

(CLICK HERE FOR TUESDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

Tuesday 5.26.20 After Market Close:

(CLICK HERE FOR TUESDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

Wednesday 5.27.20 Before Market Open:

(CLICK HERE FOR WEDNESDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

Wednesday 5.27.20 After Market Close:

(CLICK HERE FOR WEDNESDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

Thursday 5.28.20 Before Market Open:

(CLICK HERE FOR THURSDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

Thursday 5.28.20 After Market Close:

(CLICK HERE FOR THURSDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

Friday 5.29.20 Before Market Open:

([CLICK HERE FOR FRIDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!]())

NONE.


Friday 5.29.20 After Market Close:

([CLICK HERE FOR FRIDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!]())

NONE.


Costco Wholesale Corp. $302.43

Costco Wholesale Corp. (COST) is confirmed to report earnings at approximately 4:15 PM ET on Thursday, May 28, 2020. The consensus earnings estimate is $1.91 per share on revenue of $37.52 billion and the Earnings Whisper ® number is $1.92 per share. Investor sentiment going into the company's earnings release has 71% expecting an earnings beat. Consensus estimates are for year-over-year earnings growth of 1.06% with revenue increasing by 8.00%. Short interest has increased by 9.2% since the company's last earnings release while the stock has drifted lower by 3.1% from its open following the earnings release to be 1.8% above its 200 day moving average of $296.94. Overall earnings estimates have been revised lower since the company's last earnings release. On Tuesday, May 19, 2020 there was some notable buying of 6,741 contracts of the $340.00 call expiring on Friday, May 29, 2020. Option traders are pricing in a 4.6% move on earnings and the stock has averaged a 3.1% move in recent quarters.

(CLICK HERE FOR THE CHART!)


AutoZone, Inc. –

AutoZone, Inc. (AZO) is confirmed to report earnings at approximately 6:55 AM ET on Tuesday, May 26, 2020. The consensus earnings estimate is $13.82 per share on revenue of $2.71 billion and the Earnings Whisper ® number is $12.61 per share. Investor sentiment going into the company's earnings release has 36% expecting an earnings beat. Consensus estimates are for earnings to decline year-over-year by 13.57% with revenue decreasing by 2.62%. Short interest has decreased by 36.4% since the company's last earnings release while the stock has drifted higher by 11.8% from its open following the earnings release to be 4.3% above its 200 day moving average of $1,076.40. Overall earnings estimates have been revised lower since the company's last earnings release. Option traders are pricing in a 6.8% move on earnings and the stock has averaged a 5.2% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Dollar General Corporation $178.98

Dollar General Corporation (DG) is confirmed to report earnings at approximately 6:55 AM ET on Thursday, May 28, 2020. The consensus earnings estimate is $1.68 per share on revenue of $7.36 billion and the Earnings Whisper ® number is $1.81 per share. Investor sentiment going into the company's earnings release has 73% expecting an earnings beat. Consensus estimates are for year-over-year earnings growth of 13.51% with revenue increasing by 11.12%. Short interest has decreased by 36.5% since the company's last earnings release while the stock has drifted higher by 17.7% from its open following the earnings release to be 13.1% above its 200 day moving average of $158.29. Overall earnings estimates have been revised higher since the company's last earnings release. On Friday, May 15, 2020 there was some notable buying of 2,735 contracts of the $200.00 call expiring on Friday, June 19, 2020. Option traders are pricing in a 6.9% move on earnings and the stock has averaged a 7.2% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Dollar Tree Stores, Inc. $81.70

Dollar Tree Stores, Inc. (DLTR) is confirmed to report earnings at approximately 7:30 AM ET on Thursday, May 28, 2020. The consensus earnings estimate is $0.92 per share on revenue of $6.08 billion and the Earnings Whisper ® number is $0.89 per share. Investor sentiment going into the company's earnings release has 57% expecting an earnings beat The company's guidance was for earnings of $1.00 to $1.09 per share. Consensus estimates are for earnings to decline year-over-year by 19.30% with revenue increasing by 4.67%. Short interest has decreased by 14.0% since the company's last earnings release while the stock has drifted higher by 0.6% from its open following the earnings release to be 12.2% below its 200 day moving average of $93.06. Overall earnings estimates have been revised lower since the company's last earnings release. On Monday, May 18, 2020 there was some notable buying of 1,796 contracts of the $80.00 call expiring on Friday, May 29, 2020. Option traders are pricing in a 9.4% move on earnings and the stock has averaged a 5.9% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Salesforce $177.85

Salesforce (CRM) is confirmed to report earnings at approximately 4:05 PM ET on Thursday, May 28, 2020. The consensus earnings estimate is $0.69 per share on revenue of $4.85 billion and the Earnings Whisper ® number is $0.70 per share. Investor sentiment going into the company's earnings release has 76% expecting an earnings beat The company's guidance was for earnings of $0.70 to $0.71 per share. Consensus estimates are for earnings to decline year-over-year by 24.18% with revenue increasing by 29.78%. Short interest has decreased by 10.7% since the company's last earnings release while the stock has drifted higher by 0.7% from its open following the earnings release to be 11.2% above its 200 day moving average of $159.97. Overall earnings estimates have been revised lower since the company's last earnings release. On Tuesday, May 19, 2020 there was some notable buying of 6,101 contracts of the $177.50 call expiring on Friday, June 19, 2020. Option traders are pricing in a 6.1% move on earnings and the stock has averaged a 3.8% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Anaplan Inc. $51.06

Anaplan Inc. (PLAN) is confirmed to report earnings at approximately 7:30 AM ET on Tuesday, May 26, 2020. The consensus estimate is for a loss of $0.15 per share on revenue of $102.34 million and the Earnings Whisper ® number is ($0.13) per share. Investor sentiment going into the company's earnings release has 52% expecting an earnings beat The company's guidance was for revenue of $102.00 million to $103.00 million. Consensus estimates are for year-over-year earnings growth of 6.25% with revenue increasing by 34.96%. Short interest has increased by 39.9% since the company's last earnings release while the stock has drifted higher by 21.0% from its open following the earnings release to be 5.9% above its 200 day moving average of $48.21. Overall earnings estimates have been revised higher since the company's last earnings release. On Friday, May 22, 2020 there was some notable buying of 988 contracts of the $55.00 call expiring on Friday, June 19, 2020. Option traders are pricing in a 11.7% move on earnings and the stock has averaged a 12.4% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Canopy Growth Corporation $19.42

Canopy Growth Corporation (CGC) is confirmed to report earnings at approximately 6:00 AM ET on Friday, May 29, 2020. The consensus estimate is for a loss of $0.26 per share on revenue of $94.73 million and the Earnings Whisper ® number is ($0.25) per share. Investor sentiment going into the company's earnings release has 69% expecting an earnings beat. Consensus estimates are for year-over-year earnings growth of 61.19% with revenue increasing by 33.91%. Short interest has decreased by 16.1% since the company's last earnings release while the stock has drifted lower by 16.2% from its open following the earnings release to be 2.7% below its 200 day moving average of $19.95. Overall earnings estimates have been revised higher since the company's last earnings release. On Friday, May 22, 2020 there was some notable buying of 27,735 contracts of the $10.00 put expiring on Friday, June 19, 2020. Option traders are pricing in a 19.2% move on earnings and the stock has averaged a 10.7% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Bank of Nova Scotia $36.54

Bank of Nova Scotia (BNS) is confirmed to report earnings at approximately 5:30 AM ET on Tuesday, May 26, 2020. The consensus earnings estimate is $0.71 per share on revenue of $5.91 billion. Investor sentiment going into the company's earnings release has 10% expecting an earnings beat. Consensus estimates are for earnings to decline year-over-year by 44.53% with revenue decreasing by 32.91%. Short interest has increased by 18.5% since the company's last earnings release while the stock has drifted lower by 34.1% from its open following the earnings release to be 28.0% below its 200 day moving average of $50.78. Overall earnings estimates have been revised lower since the company's last earnings release. On Monday, May 4, 2020 there was some notable buying of 4,054 contracts of the $35.00 put expiring on Friday, June 19, 2020. Option traders are pricing in a 15.1% move on earnings and the stock has averaged a 1.2% move in recent quarters.

(CLICK HERE FOR THE CHART!)


Okta, Inc. $192.49

Okta, Inc. (OKTA) is confirmed to report earnings at approximately 4:05 PM ET on Thursday, May 28, 2020. The consensus estimate is for a loss of $0.17 per share on revenue of $172.10 million and the Earnings Whisper ® number is ($0.15) per share. Investor sentiment going into the company's earnings release has 66% expecting an earnings beat The company's guidance was for a loss of $0.24 to $0.23 per share on revenue of $171.00 million to $173.00 million. Consensus estimates are for year-over-year earnings growth of 15.00% with revenue increasing by 37.43%. Short interest has increased by 1.9% since the company's last earnings release while the stock has drifted higher by 49.0% from its open following the earnings release to be 52.8% above its 200 day moving average of $125.99. Overall earnings estimates have been revised lower since the company's last earnings release. On Thursday, May 7, 2020 there was some notable buying of 572 contracts of the $230.00 call expiring on Friday, June 19, 2020. Option traders are pricing in a 8.9% move on earnings and the stock has averaged a 4.6% move in recent quarters.

(CLICK HERE FOR THE CHART!)


NIO Inc. $3.27

NIO Inc. (NIO) is confirmed to report earnings at approximately 7:30 AM ET on Thursday, May 28, 2020. Investor sentiment going into the company's earnings release has 41% expecting an earnings beat The company's guidance was for revenue of $174.00 million to $183.00 million. Short interest has decreased by 23.3% since the company's last earnings release while the stock has drifted higher by 36.2% from its open following the earnings release to be 11.7% above its 200 day moving average of $2.93. On Tuesday, May 19, 2020 there was some notable buying of 17,260 contracts of the $2.50 put expiring on Friday, July 17, 2020. Option traders are pricing in a 18.3% move on earnings and the stock has averaged a 19.9% move in recent quarters.

(CLICK HERE FOR THE CHART!)


DISCUSS!

What are you all watching for in this upcoming trading week?


I hope you all have a wonderful weekend and a great trading week ahead r/StockMarket.

submitted by /u/bigbear0083
[comments]



Source link

قالب وردپرس

Share Market

The IPOX® Week, June 1, 2020

Published

on


  • Everything IPOX records big returns during May as investors flock to the New Generation of stocks.
  • FANG-free, broad-based IPOX 100 U.S. (ETF: FPX) jumps +11.26%. Diversified IPOX International (ETF: FPXI) rises to +14.33% YTD, closes week at fresh all-time high.
  • JDE Peet’s strong Amsterdam debut, ZoomInfo lined up.

Everything IPOX records big returns during May as investors flock to the New Generation of stocks. Amid stable U.S. yields, lower equity risk (VIX: -2.31%), geo-political jitters, declining global anxiety over Covid-19 and the S&P 500 (SPX) zooming through big technical resistance, IPOX finished May with another strong showing, with multiple Indexes closing out the month at or near all-time highs. In the U.S., e.g., the FANG-free, broad-based IPOX 100 U.S. (ETF: FPX) jumped +3.28% last week to gain +11.26% during May, a massive +673 bps. ahead of the S&P 500 (SPX), benchmark for U.S. stocks. The IPOX 100 U.S. (ETF: FPX) also finished out the month by recording its first positive YTD close since Feb. 26, 2020, as late-day positioning amid previously delayed index rebalancing’s propelled IPOX holdings which are typically underrepresented in the benchmarks. 88% of portfolio constituents rose during May, with the equally-weighted average (median) stock adding a massive +13.96% (+11.52%), ahead of the applied market-cap weighted IPOX 100 U.S. (ETF: FPX) and underlying the big strength in small- and mid-cap specialty exposure in light of a good month for the Russell 2000 (RTY), which gained +6.36% to -16.45% YTD.

Diversified IPOX International (ETF: FPXI) rises to +14.33% YTD, closes week at fresh all-time high. Strong IPOX momentum continued to extend to firms domiciled outside the U.S. with the diversified IPOX International (ETF: FPXI) adding +3.35% to +14.33% YTD, its 8th consecutive weekly gain, and up +10.69% for May. All global regions represented in the portfolio drove returns, including China (CNI), Developed Asia-Pacific (IPTA), Europe (IXTE, IPND) and Japan (IPJP). Gains were broad-based across market-cap spectrum and industries, led by Asia-Pacific key tech plays Sea (SE US: +43.58%), Meituan Dianping (3690 HK: +41.33%), Pinduoduo (PDD US: +40.96%), Freee KK (4478 JP: +39.29%) and Mercari (4385 JP: +18.32%), followed by specialty exposure linked to diverse other industries including Danish drug maker Genmab (GMAB US: +25.24%), Brazil Financial XP (XP US: +20.67%) and leading global energy plays Orsted (ORSTED DC: +14.29%) and Saudi Arabian Oil (ARAMCO AB: +4.27%).

IPOX International ETF (FPXI)-Investing since 11/2015

Long-only IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 12.23 27.93 12.79
IPOX® International (IPXI)* (USD) (ETF: FPXI) 10.69 31.37 14.33
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) 11.26 29.60 0.38
IPOX® ESG (IPXT) (USD) 7.13
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 11.99 34.55 15.03
IPOX® Nordic (IPND) 15.29 38.52 14.71
IPOX® 100 Europe (IPOE)* (USD) 9.52 30.97 3.02
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 10.67 4.41 9.23
IPOX® China (CNI) (USD) 7.79 26.31 14.52
IPOX® Japan (IPJP)** (JPY) 13.00 37.91 -3.10

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact info@ipox.com

NOW TRADING: 0.25 tick IPOX 100 U.S. Index Futures (Front month: IPOM0). Whether you are a risk manager or speculator, CME Group – the world’s largest exchange operator – now offers efficient and cost-effective access to the IPOX 100 U.S. Index (ETF: FPX) via emini IPOX 100 U.S. Index Futures (Front month: IPOM0). Contact info@ipox.com for further info and Free Data & Resources.

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (May 2020 in %):
MYOKARDIA (FPX) 62.83 ARVINAS (FPX) -36.63
LIVONGO HEALTH (FPX) 49.79 HAPAG-LLOYD (FPXE) -34.07
ARGENX (FPXE) 49.70 COUNTRYSIDE (FPXE) -28.23
APPFOLIO (FPX) 44.28 GSX TECHEDU (FPXI) -20.73
SEA (FPXI) 43.58 AIB GROUP (FPXE) -20.08
REDFIN (FPX) 41.93 KOOLEARN TECH. (FPXI) -16.84
MEITUAN DIANPING (FPXI) 41.33 CHINA FEIHE (FPXI) -13.37
PINDUODUO (FPXI) 40.96 COOR SERVICE (FPXE) -10.08
FREEE KK (FPXI) 39.29 ROKU (FPX) -9.67
KINSALE CAPITAL (FPX) 37.47 GILEAD SCIENCES (FPX) -7.35

IPO Deal-flow Review and Outlook: JDE Peet’s surges in Amsterdam $2.4 billion debut. ZoomInfo lined up. With no U.S. IPOs taking place during the shortened U.S. trading week, focus was on deals in Europe with JAB’s coffee empire JDE Peet’s (JDEP NA: +13.78%) and German analytic database management firm Exasol (EXL GR: +35.58%) debuting strongly. With the global IPO window now open, the world’s third-largest record label Warner Music Group (WMG US), business-intelligence platform ZoomInfo Technologies (ZI US), fibrosis biopharma Pliant Therapeutics (PLRX US) and J&J-backed GenScript cell therapy unit spin-off Legend Biotech (LEGN US) are scheduled to list in the U.S. this week, while Tencent-backed payment platform Yeahka (9923 HK) is set to launch with over 600x oversubscription in Hong Kong. Other IPO news include: 1) Brookfield-backed WeWork rival Industrious poised for IPO; 2) Germany OTC drug maker PharmaSGP plans Frankfurt listing; 3) U.S.-listed NetEase and JD.com to list in Hong Kong in upcoming weeks; 4) multiple biotechs added to the U.S. pipeline including Avidity Biosciences Generation Bio, Progenity and Vaxcyte.

The post The IPOX® Week, June 1, 2020 appeared first on Low Cost Stock & Options Trading | Advanced Online Stock Trading | Lightspeed |.



Source link

قالب وردپرس

Continue Reading

Share Market

Smartphone Slumber, or Smartphone Surge?

Published

on


Despite many industries being  affected in recent months due to a global pandemic, smartphone releases aren’t slowing down. Apple recently launched a more affordable iPhone SE, complete with formidable features for a fraction of its $1,000+ flagship models—and another phone is in the works for the tech giant with an expected reveal soon. Similarly, Samsung hosted an event in San Francisco in February to ship its Galaxy smartphone. But as the product supply keeps churning out new devices, will there be demand? 

While we can try to look at past recessions to establish a benchmark for how things may progress, our last economic decline in 2008 cannot provide a proper guide as to how this one may affect mobile device sales. More than a decade ago, devices weren’t nearly as vital as they are today when it comes to connectivity—both personally and professionally. So, on one hand, unemployment rates are surging and creating a deficit in durable spending, which includes gadgets. On the other hand, mobile devices today can easily be considered more vital and advanced than they were 10+ years ago, which has been proven in recent months.

With businesses and organizations of all types closed around the world, one of the emerging trends has been the work-from-home model. As the world adapts to different methods of communication, industries are discovering that working remotely may actually be feasible—not just on an as-needed basis, but as a permanent staple: CRN recently reported that “About 74 percent of CFOs surveyed by Gartner expect some of their employees who were forced to work from home because of the COVID-19 coronavirus pandemic to continue working remotely after the pandemic ends.” As CFOs find ways to manage costs, a remote workforce—which reduces on-premises technology and real estate needs—is a great way to cut expenses. And if they move forward with a permanently remote workforce, they may need to make significant investments in devices for their employees, which could be good for brands.

Another side of the technological coin is the one that factors in the quality and life cycle of a device—so as consumers look to upgrade, they may be willing to spend more on a device that will last longer, extending its lifespan. Prior to the pandemic, global smartphone shipments had been in decline, as consumers were holding on to their phones longer. But if there’s still innovation happening, there’s a mixed batch in the market for different needs, all of which can be fulfilled:

  • Innovation will continue, creating a wave of trade-ins 
  • Consumers who may want an upgrade but don’t want the newest device can purchase a used device 
  • Both of these alternatives can offer carriers and manufacturers options for how they deal with devices

Over the next several months, we’ll see how the mobile market responds to the aftermath of the pandemic, as well as to new phone releases. 

In the meantime, there’s a secondary mobile marketthat larger carriers and OEMs can leverage to move their trade-in and excess devices. One of these channels is B-Stock. We operate the world’s largest B2B marketplace for trade-in and excess mobile phones.  Across our client marketplaces—which consist of large carriers, OEMs, and buy-back companies—we sell more than 3 million phones and more than 5 million mobile accessories every year.

For more information on selling via our mobile marketplace platform, please download our Mobile Brochure. And If you want to learn more about secondary market trends and how large carriers, OEMs, and buy-back companies are increasing the life cycle and pricing of phones via B-Stock’s B2B marketplace platform, request a demo. 

Request Demo

 

 

The post Smartphone Slumber, or Smartphone Surge? appeared first on B-Stock Solutions.



Source link

قالب وردپرس

Continue Reading

Share Market

Economic Package Part 2: Quick Takeaways

Published

on


Hon. Finance Minister announced a series of liquidity measures under Part 2 of Economic Package on 13th May 2020.

The key highlights of Part 2 package are in bold, followed by our opinion:

Upto Rs. 3 Lakh Crore for MSME with Credit Guarantee from Government.

The current outstanding amount of MSME loans is around Rs. 18 Lakh Crore. Other loans against assets excluded. Additional line of Rs. 3 Lakh Crore’s unsecured loans can help the companies restart their business. 45 lakh MSME eligible for this loan facility. These firms employ close to 12 Crore people.

Additional Rs. 20,000 Cr for stressed MSME

Around 2 Lakh MSME are under stress meaning they are either overleveraged or they have delayed interest payments/NPA. This provides relief to banks and NBFC that may have high NPA due to SME.

Liquidity for NBFC

Special liquidity of Rs. 30,000 Cr to NBFC/HFC to all investment-grade paper with a government guarantee. Additionally, another Rs. 45,000 Cr to all NBFC with a partial guarantee by the government up to 20%. Many banking experts believe this could be inadequate.

Many NBFCs lend to last-mile borrowers either in non-traditional segments or remote areas or low rated borrowers. NBFC didn’t have funds to lend, which led to a collapse in demand for end borrowers. Banks were reluctant to lend because of risks in NBFC. Since the government is now offering liquidity and partial guarantee, funds will flow to reasonably good NBFC and hence the end borrower.

Liquidity for Discom with state’s guarantee to borrower

Discoms have Rs. 90,000 Cr in dues towards generation and transmission companies. Relief for generation companies to carry on their business. Many industry experts believe there needs to be reform in the power sector instead of the current stopgap arrangement.

25% cut in TDS, TCS

TDS and TCS cut of 25% on payments for contracts, professional fees, interest, rent, dividend, commission, and brokerage. This provides liquidity to businesses, individuals, and investors. The total expected liquidity in hand will be approx. Rs. 50,000 Cr.

Current measures are mostly liquidity measures and may have temporary relief to restart a business. However, more reforms/stimulus is needed to fix the demand side of the economy which got affected due to i) job losses/salary cuts ii) reluctance to purchases from poor sentiment.

Many of these measures may not have desired implications unless we start seeing economic activity reinstated. Our interpretation of potential benefits is based on the fact that the economy will be reopened in a reasonable time.

We will be hearing series announcements in the coming days. We will be sharing quick takeaways with our interpretation.

If you liked what you read and would like to put it in to practice Register at MoneyWorks4me.com. You will get amazing FREE features that will enable you to invest in Stocks and Mutual Funds the right way.


Join our Telegram Channel:
Stock Investing
Mutual Fund Investing

Join our Telegram Channel:
Stock Investing
Mutual Fund Investing

Need help on Investing? And more….Puchho Befikar

Kyunki yeh paise ka mamala hai
Start Chat | Request a Callback | Call 020 6725 8333 | WhatsApp 8055769463

The post Economic Package Part 2: Quick Takeaways appeared first on Investment Shastra.



Source link

قالب وردپرس

Continue Reading

Trending